Polymarket Under Siege: New York Sues the Platform Paying LeBron $15M/Year as Wembanyama Slams Betting Endorsements
The off-court pressure around LeBron James' $15M/year Polymarket endorsement deal — the same deal league insiders flagged as a potential cap loophole when paired with his $8M Sixers salary1 — escalated on two fronts this week.
First, the legal front: on Thursday, Sept. 24, New York AG Letitia James and Gov. Kathy Hochul sued Polymarket US (QCX LLC), "alleging its prediction markets constitute illegal, unlicensed gambling," with the state seeking "to bar operations, forfeit illegal gains, pay restitution and fines equal to three times its gains" and alleging unpaid taxes and betting by 18- to 20-year-olds (per a roundup of the AG's announcement). Polymarket countersued hours later in Manhattan federal court, arguing the CFTC has exclusive authority: "This is an extraordinary assertion of state power squarely foreclosed by federal law," Polymarket said in its lawsuit. Chief Legal Officer Neal Kumar said Polymarket tried to work with state officials, but "they preferred the media hit." Reported stakes run to a $4.6 billion demand (Casino.org/Bookmakers Review).
Second, the players' front: Victor Wembanyama — one day after media day — made his first public break with the trend, telling Front Office Sports of athletes promoting prediction markets: "Absolutely not. I will never do that." The Athletic's version: Wembanyama says it's "very sad" to see NBA players "promote" prediction markets. Context per ABS-CBN: "NBA rules allow such partnerships with betting operators and prediction markets, although players aren't allowed to promote gambling related to the NBA."
Narrative: the company bankrolling the league's biggest star at 15 times his NBA salary is now fighting for its legal life in New York, and the league's anointed next face is publicly refusing to touch that money. Neither development is yet the league office itself acting — the watch for an NBA comment, memo, or inquiry into endorsement side-deals remains open — but the political and cultural ground under the Polymarket deal is shifting fast.
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An instance of Cap circumvention has migrated from under-the-table cash to endorsement deals. — Outside sponsorship income paid to a star is now scrutinized as disguised salary under the cap-circumvention lens. ↩︎